Your Age

Younger drivers, usually under 25, are likely to be charged higher premiums as they are statistically more likely to be involved in a crash.

One way to limit these extra costs is to look into special schemes such as “pay as you drive” insurance which is charged by the mile using a special tracking device. Another option is schemes which offer young drivers a lower premium as long as they do not drive at night time (when crashes are more likely).

Drivers who pass their test at a young age may be able to take advantage of the insurance system if they go to university and do not need to own a car. In some situations it may work out that buying and insuring a very cheap car with a minimal level of cover for the time they are at university (and then not driving, so being certain not to claim) builds up enough of a no-claims discount to be financially worthwhile when they do come to drive. This is far from guaranteed, though, and the figures would need to be examined very closely.

One money-saving trick which should be avoided is “fronting”. This involves falsely listing an older adult such as a parent as the main driver, with the younger driver listed as an additional driver. This is not only illegal, but is likely to invalidate the insurance completely.

Gender

Insurers are allowed to take into account gender when setting premiums. This ability was briefly threatened by a proposed European Union directive which was successfully lobbied against.

At least one major firm gives the impression that it is a woman-only motor insurer. In reality this would not be legal, and the company must consider applications from male drivers, though it is allowed to charge them higher premiums.

It’s worth remembering that although a company may offer features which are appealing to female drivers, such marketing is no guarantee that a woman customer will get a lower quote than from another insurer. As always, the best advice is to shop around.

Driving Ability

The Driving Standards Agency runs a special course named Pass Plus which is aimed at drivers who have recently passed their test, though any driver can take the course. Some insurance companies will offer lower premiums for people who have achieved this extra qualification, particularly younger drivers.

The course involves six modules covering driving on dual carriageways, on motorways, at nighttime in poor weather conditions, in rural areas, and in urban areas. There is no test, but the driver is constantly assessed during the course and must perform to an acceptable skill level.

There is a variable fee for the course, though this may be outweighed by the discounts available on insurance. Those passing the course will need to check the rules of individual insurers as some allow the discount to be carried over for a year or two (for example, if they pass while at school or university but do not buy a car at that time).